Al Babtain closes landmark acquisition deal
Riyadh, November 1, 2010
Riyadh-based Al Babtain Power & Telecommunications Company (ABP&T) has closed a landmark transaction that included the first ever cash-and-shares deal involving the issuance of shares in a listed Saudi company to a foreign shareholder.
A leading manufacturer of Power & Telecommunication products, ABP&T is active in the area of outdoor lighting, transmission and distribution, telecommunications, structural steel and galvanizing services.
As per the deal, ABP&T will acquire 49 per cent in Al Babtain LeBlanc Telecom Systems Company (ABL) from Singapore-based telecommunications group LeBlanc, in a transaction that values ABL at SR183.1 million ($48.7 million), said HSBC Saudi Arabia which acted as the sole financial advisor for the deal.
The transaction is a combination of shares and cash and will result in ABP&T becoming the 100 per cent owner in ABL, the statement added.
Commenting on the deal, Walid Khoury, CEO of HSBC Saudi Arabia, said, “This is a landmark transaction involving the first instance of a publicly listed Saudi corporate issuing equity as consideration to a foreign vendor.”
“It is a testament to HSBC's strong merger and acquisition (M&A) origination and execution capabilities in Saudi Arabia, in particular in relation to Saudi-listed companies, where share transactions are rare,” he added.
HSBC, Khoury said, was the largest and most widely-represented bank in both the Middle East and Asia, and was heavily involved in the increasing volumes of cross-border transactions between the two regions.
According to him, the bank’s focus on emerging markets had seen the volume and value of debt, equity, merger and acquisition transactions between the Mena region and Asia-Pacific soar in recent years.
In Saudi Arabia, the deal further enhances HSBC’s strong relationship with ABP&T, following the bank's role as financial advisor to the company on its IPO in December 2006, Khoury added.-TradeArabia News Service